Has your loan been turned down by banks because you have poor credit score or you are recovering from bankruptcy? Other banks will even turn you down because of court cases, not being part the electoral register, or having other loans. However, there are other great options that make it easy for you to get the money you anticipate. One of these options are logbook loans that are very easy and fast to get. However, before going for a logbook loan, here are some crucial questions that you should ask.
How much can I get against my car?
Many logbook loan lenders are willing to give you an amount equivalent to half the value of your car. However, this is entirely dependent on the policy of the lender. Your focus should not be guided by the maximum the car can fetch, but the amount you are looking for. For example, if you only want £10,000, why go for £20,000 because the lender is willing to give it to you?
What is the interest rate of the logbook loan I want?
The interest rate for most logbook loans is higher compared to conventional lending institutions such as banks. The rate ranges from 100%-400% APR (annual percentage rate). The target here is to ensure you get a lender with the lowest APR. Some lenders will even allow you to negotiate for the APR in order to get higher value from the deal.
How can I get the best deal?
Getting the right deal is best looked at from the point of Annual Percentage Rate. You are assured of the best deal by getting the lender with good rates and clearing the loan as fast as possible. For example, if you get a logbook loan with an interest of £1000 for 12 months, you will only pay half by repaying the loan in 6 months.
What risks are involved in logbook loans?
The main logbook loan risks are diverse especially if you default the agreement entered with the lender. Your car will be taken away to clear the loan if you default. Immediately you sign for a logbook loan, the car ownership is surrendered to the lender until the loan is fully cleared. Remember that in the event that the lender comes for your car and sells it, he can still follow you if the total amount did not clear the entire loan.
How fast does a lender come for the car if I default?
While no one wants to think of defaulting, situations can emerge and make your monthly remittance late with a day or even a week. For example, your salary can get delayed by inevitable situations or clients fail to clear payments on time. When the day you have agreed with the lender passes, the vehicle can be retrieved. However, most of them will rarely come the following day or week.
The ideal way to resolve such an issue is talking to the lender to give the payment date. For example, Just Logbook Loan has a very caring, understanding, and reasonable staff that listens to all clients. Just inform the lender that the salary was delayed with a day and the monthly remittance will be done on a specific date.
Getting these questions answered will give you a better insight about logbook loans so that you can avoid the associated risks. Besides, having the questions answered by professionals or gathering information from reviews can help you get a better deal. Always remember that logbook loans should be considered as options of last resort.